Inheritance and means-tested benefits

Newly_retired

A relative is in receipt of income- related ESA and Housing Benefit,( plus PIP which is not means-rested.) She is due to inherit from her father. His estate is to be split three ways. There is a share of a property within the estate, which is where this relative lives, but it has not been bequeathed as a specific asset. If the executors were to apportion the share of property to this relative, rather than money, would it affect her benefits?
I can’t see how DWP can say it is deliberate Deprivation of assets, as the beneficiary has no say in the matter.   The main reason would be to avoid her having to move out.

PixelPound

I believe the means tested goes on the amount of money/saving and not based on any asset valuations unless those assets are sold.

Alice_Holt

My view is that it would not affect her ESA, as capital in the property you live in is disregarded by the DWP.
Neither do I think D of A would be relevant.

Housing Benefit might be more problematic (if she pays rent to other close relatives), as the LA could decide the new shared ownership tenancy is contrived ?

Keep_pedalling

Alice_Holt said:

My view is that it would not affect her ESA, as capital in the property you live in is disregarded by the DWP.
Neither do I think D of A would be relevant.

Housing Benefit might be more problematic (if she pays rent to other close relatives), as the LA could decide the new shared ownership tenancy is contrived ?

It would certainly affect HB as he/she will have to have less rent to pay although I got the impression from your previous thread that they had been allowed to step there rent free.

Bearing in mind (based previous threads) the horrible complicated mess all the beneficiaries are in I think anything the executors do should only be done after taking professional advice 

Alice_Holt

Keep_pedalling said:

Alice_Holt said:

My view is that it would not affect her ESA, as capital in the property you live in is disregarded by the DWP.
Neither do I think D of A would be relevant.

Housing Benefit might be more problematic (if she pays rent to other close relatives), as the LA could decide the new shared ownership tenancy is contrived ?

Bearing in mind (based previous threads) the horrible complicated mess all the beneficiaries are in I think anything the executors do should only be done after taking professional advice 

      Yes, I've just looked at the previous threads - +1 to seeking professional legal and tax advice. 

poppy12345

If the relative is living in the house that belonged to the father, how is she claiming housing benefit for help with the rent?

Newly_retired

Thanks for replies.
She pays rent to the Housing Association who own the largest share of the property, so that will stay the same.

i am certainly going to take professional legal advice, but I don't think many solicitors are as knowledgeable about Welfare Benefits as people on this board!

poppy12345

Newly_retired said:

Thanks for replies.
She pays rent to the Housing Association who own the largest share of the property, so that will stay the same.

Ah, that makes sense, thanks for explaining.

TELLIT01

Newly_retired said:

i am certainly going to take professional legal advice, but I don't think many solicitors are as knowledgeable about Welfare Benefits as people on this board!

I would be extremely careful about assuming advice given by everybody on these boards is accurate.  There are certainly many who do know their subject inside out, but many more whose expertise has been gleaned from 'the bloke down the pub' after half a dozen pints.

peteuk

Newly_retired said:

A relative is in receipt of income- related ESA and Housing Benefit,( plus PIP which is not means-rested.) She is due to inherit from her father. His estate is to be split three ways. There is a share of a property within the estate, which is where this relative lives, but it has not been bequeathed as a specific asset. If the executors were to apportion the share of property to this relative, rather than money, would it affect her benefits?
I can’t see how DWP can say it is deliberate Deprivation of assets, as the beneficiary has no say in the matter.   The main reason would be to avoid her having to move out.

Sorry a few questions the person claiming ESA and Housing was living with the father? Which is part owned by the father and housing association or the father and relative, and the housing association. 

If part owned by the father and relative then (double check this) but the ownership of the house goes to the other part owner.  And why I say double check this is because of the housing association.

For example Mum and Dad own the house out right, when one of them passes ownership goes automatically transfers to the other.
IN this case the fathers part share may pass directly to the relative. IF they part own it with the father.

Monies are then divided as requested.

This will possibly go to probate if the father has no living spouse and so nothing can be done with the property until probate is completed,  If the monies are less than £50K then they can be used however with it out going to probate.  However this needs to take into account any payable debt and on going payments the father had.  

Grumpy_chap

peteuk said:

If part owned by the father and relative then (double check this) but the ownership of the house goes to the other part owner.  And why I say double check this is because of the housing association.

Even without the housing association being connected, the transfer of ownership on death varies whether joint tenants or tenants in common.